How It Works - National Contractors
The first question you might ask is why is there a difference between the ACT and all others states and territories? The answer lies in state/territory specific payroll tax laws. In all other states and territories recruitment companies must pay Payroll Tax for each of their contractors, regardless of the contractor engaging a management company such as PayMe.
| State | ACT | NSW | VIC | SA | WA | NT | QLD | TAS |
|---|---|---|---|---|---|---|---|---|
| Payroll Tax | 6.85% | 6% | 5.05% | 5.25% | 5.5% | 6.2% | 4.75% | 6.1% |
Where does PayMe Come In and What Benefits are there for You?
It all revolves around "core business", maximising your remuneration
and minimising your taxation:
The “core business” of a recruitment company includes recruitment, placement and contract renewal services. It does not include payroll as "core business". While some payroll services are offered, they do not include the full suite of contractor payroll management services. Your recruitment company wants to ensure that you receive the best remuneration possible! In order to for you to receive the best remuneration, minimised taxation, salary sacrifice, leases on so on, they recommend that you engage a contractor payroll management company, such as PayMe, for the full suite of contractor payroll management services.
The “core business” of PayMe is payroll! We provide the full suite of contractor payroll management services that includes placement within a legal company structure, all forms of salary packaging, leasing, and salary sacrifices such as laptops, mobile telephones, professional books and courses. This also includes paying your tax and your superannuation.
Is Engaging PayMe Cost Effective for You?
If you would like to take advantage of salary packaging, a car lease, salary sacrificing a laptop, your mobile etc...yes it is, and you can confirm it.
The simple test is to compare PayMe to our competitors; can they provide all we can at 3.2% with no additional fees....ever? Be sure to ask specific questions like:
- Is there a joining fee or a leaving fee?
- Will it cost me a fee to salary sacrifice a laptop or mobile telephone?
- Will Living Away From Home Allowance add to my fees?
- If I salary package a motor cycle, will there be additional fees?
- If I salary package more than one car, will there be additional fees?
If the answer to any of these questions is "Yes", then you will be paying more than our 3.2% flat fee.
- Can I always get a "person" at the end of the telephone line, and if I can, are they a former contractor who knows what I need?
- Will you always pay me on a specific day, and will it be a weekday so I can contact you if I feel there is a problem?
- If there is a problem, can you guarantee that on that same weekday you will correct the problem and have the correct pay in my account on that same day?
If the answer to any of these questions is "No we cannot", then you are engaging a company that provides a lesser service than PayMe.
If you would like to understand this in more detail, simply contact us.
